Savannah morning news. [volume] (Savannah) 1868-1887, 1887-04-03
FREIGHT RATE PUZZLES.
THE INTERSTATB COMMISSION
BEGIN active WORK.

mittee the First to Appear Before tn q
Commissioners - They Request That
the Present Schedule of Rates be Com
tinued Until the Commission Can
Investigate Them.
WASHINGTON, April 2.-The Interstate
Commission began active work at II
O'Clock this morning. At that time eX-
GOV. Rufus Il. Bullock, h. ID. Spaulding
and S. F. Woodson, the committee APP
pointed by the Atlanta Chamber of Com
merce to cooperate with the Southern
Railway ana Steamship Association in
seeking such liberal Interpretation or
modification OF the operation OF the inter
state commerce act as may be deemed
necessary for the protection OF the manu-
featuring aud commercial interests OF
this and other Southern societies, were
granted hearing. Gov. Bullock, speak
ing for his associates and himself,
thanked the commission for the opportu-
nifty afforded and read the following
paper:
To the Honorable Interstate Co,a,nerce Conn
DiSstnn'
GENTLEMEN-We, the undersigned commit
tee appointed by the Atlanta Chamber of
resent to your honorable body that the terri
tory covered by the Southern Railway ana
steamship Association Is comparatively
sparseiy populated, ana that the trade centres
or distributive cities within that territory are
widely separated, and, therefore, that rule
which would apply to lines IN more populous
sections OF the country would be disastrous to
us. The rates OF freight now of force by
said association. which is the territory
south of the Potomac aud Ono and east Of
the Mississippi rivers. are the result of ten
years of experiment, modified by the orders
of the Railroad Comm ssioners in the several
States, aud by appeals from CONNIE rcial
bodies like eur own representing the interests
of shippers. Your petitioners further repre-
sent that the rates now of force as EN- bodied
in the tariff of the Southern Railway aud
Steam ship Association are acceptable to our
shippers generally, and under them trade
has been established. contracts for the pur-
chase and sale OF commodities been entered
into, and sudden change would prove seri
ously hurIful to the parties In interest. We
are informed by the railway management
that under fear OF the penalties provided
by the interstate commerce law their road
will be compelled to largely increase their
rates on April 5. This VIII destroy the whole
system of rates upon which our Southern
manufacturing industries have been founded,
and disorganize ana paralyze the trade cen
tres upOn and through which wholesale deal
ers have established their extended business.
We, therefore, respectfully petition your
honorable body to pass an order on or before
ADFll D 10 lDe euSCL bHdb ING bCUtAule OF ThlCS
IN the territory south of the Potomac and
Ohio and east Of the Mississippi rivers, SO
far as these rates relate to interstate
commerce, be declared Of force until
further order of your honorable commission,
and that reasonable time will be given for
further hearing and revision before any
changes are put in force. We submit here
with the schedule of rates OF the Southern
we have referred We also invite your al
tentou TO the accompanying comparative
statement. which we have prepared, of the
present rates, by which is shown the great
increase which will occur In rates to the
principal points If the railways put in force
the rates they now understand the new law
will require.
SOME OF THE CHANGES.
The showing made by the comparative
statement submitted may be judged by
the fact that the rates from New York to
Atlanta, Montgomery, Selma, Rome. Dali
ton and Chattanooga will be increased
from 81 IA to 81 Al; to Macon from 81 %
to 81 80; TO Augusta from 9Gc to 81 q;
from CINCINNATI to Atlanta from 81 OF to
81 26; to Macon and Augusta from 81 OF
to 81 As.
The chairman of the commission,
Judge Cooley, remarked interrogatively
that he understood the application to be
in part, at leaet, in support of the appll-
cation which had been made by the rail-
road companies for permission to charge
less tor long than for short hauls.
Gov. Bullock responded affirmatively.
At present, Queried the chairman, the
railroads are charging less for a longer
than for a shorter distance.
Gov. Bullock said this was the case
where it was neces sary to meet the Cir
cumstapces of water transportation.
The chairman asked the opinion of the
committee with respect to the authority
of the commission to make the order
asked of them.
Gov. Bullock replied that as they read
the provisions of the fourth section they
understood that the commission had the
authority. The railroads, he added, had
informed them that unless they made
their rates at once they would he liable
to penalties under the law. Contracts
have been made by merchants for de-
livery three months hence, based upon
the rates which prevailed at the time.
Now to suddenly raise these rates would
prove disastrous.
A brief cOloquy, during which, in re-
ply to the queries by Col. Walker and
Mir. Morrison, the position Ofthe commit
tee in respect to some details was elabo-
rated, ended the hearing. The whole pro-
ceeding was informal, the hearing being
granted at this time as favor to the
EenLlblu6H WuO udu a uiSbAHCe
to present their case. No formal con-
sideration OF this question, or any other,
will be undertaken before April 5, on
which date the law goes into effect.
ANOTHER HEARING.
At 3 O'Clock this afternoon q hearing
was given to representatives of the
Southern Railway and Steamship Asso-
citation. They were fifteen or twenty in
number. Milton Ii. Smith. Vice Presi.
dent of the Louisville & Nashville rail.
road, was selected as the spokesman of
the delegation and addressed the com mis-
sion. He said they were present TO apply
tor authority TO charge less for the trans
portation of property between compet.
tive points by the lines of the members of
the association than between inter-
mediate points. lie said that the asso-
Grafton was only one OF several which
had come INTO existence through the
rapid developments of transportation
during the last twenty years.
At first little effort was made
by railroad lines for cooperation
shippers were in the habit of shipping to
forwarding houses when their shipments
passed beyond the terminus OF the first
road. Out Of this condition grew the fast
freight lines formed by forwarders, who,
by making special arrangements. We're
able to secure rates below those which
shippers would be compelled To pay Ia
roads IL they dealt Individually. Then
the roads began tho through traffic sys.
TEN, aud frequent conferences between
N n wnpfa nj Tho VaEiOna 1inca haoouna